Are you tired of trying to cancel unwanted subscriptions only to jump through endless hoops? Well, good news! Canceling recurring subscriptions is now easier than ever thanks to a recent ruling by the US Federal Trade Commission (FTC).
Last year, the FTC proposed a “click to cancel” provision after uncovering deceptive subscription practices by companies like Adobe, Amazon, and Microsoft.
Under the new rule, businesses must make canceling a subscription as easy as signing up for it, disclose subscription terms clearly, and obtain customer consent before charging them.
FTC chair Lina Khan highlighted, “The FTC’s rule will end these tricks and traps, saving Americans time and money. Nobody should be stuck paying for a service they no longer want.”
The finalized rule aims to protect consumers from misleading subscription practices and provides businesses with clear guidelines to build trust and avoid enforcement actions.
Key provisions include preventing businesses from misrepresenting facts, failing to disclose material terms, charging customers without consent, and not offering a simple cancellation process.
Most of the “click-to-cancel” ruling provisions take effect 180 days after publication in the Federal Register.